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The real estate market in Navi Mumbai will surely get a boost with the farmers accepting the state government's offer for the international airport land there, said developers.

Arvind Goel, president of Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai, said the uncertainty over the airport has been cleared now.

"The project affected persons (PAPs) accepting the offer would rejuvenate the real estate market and spark fresh demand," said Goel.

Manohar Shroff, general secretary of MCHI (Navi Mumbai), is happy that the government was able to convince the farmers to part with their land for the proposed airport. "We have been hearing about the airport for the past 19 years. A major hurdle being cleared will surely boost the real estate market," said Shroff.

Realty experts, however, beg to differ with the developers. "Unless transport is developed, the airport is of no use. Without connectivity, the airport will have little impact on the property market in Navi Mumbai and Panvel . The property market is already booming in Navi Mumbai.

"The developers cashed in on the sentiments of the proposed airport long time ago. In fact, the airport will have a negative impact on the housing sector because of the several restriction on high-rises," said Pankaj Kapoor, managing director of Liases and Foras, a real estate research firm.

He said the decision would also boost the hospitality market.

"Schools, colleges, markets, hospitals and transport are important for appreciation of residential property market," Kapoor said, adding that across the world, an airport has never increased property prices significantly.

Goel said that the state government can convert Navi Mumbai into New York or New Jersey if the trans-harbour link project takes shape. "There is scarcity of land in Mumbai but not in Navi Mumbai. The land can be utilised properly," said Goel.

Navi Mumbai: A magnet for commercial realty

Mohanjeet Singh Sehgal, Sep 10, 2009, 04.42am IST

"Even India's leading conglomerates have taken up commercial space here. The state administration has already shifted wholesale commodity markets to Navi Mumbai. So, you have endorsements from different segments that Navi Mumbai's commercial real estate is much sought after," he says.

Suresh Haware, MD, Haware Builders concurs. "Even at the 'nano' end of the commercial real estate spectrum, demand is high," he says. It is the small offices and shops' segment that have witnessed the highest demand at Haware Builders' commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh district and commercial is the latest buzzword in Navi Mumbai's real estate scenario, says Vijay Gajra of the Gajra Group. "Commercial options in Navi Mumbai span a huge price band. Growth of the residential segment in Navi Mumbai, prior to that of the commercial segment, actually works out in favour of the end-user today, as manpower resources are easily available," he points out.

"Commercial real estate in Navi Mumbai comes at competitive prices vis-?-vis other options in the Mumbai metropolitan region (MMR), with the added advantage of being located in a well-planned city," adds Gajra.

IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and logistics or shipping, are proving to be the next big segment in Navi Mumbai's commercial spectrum, shares Mayur Shah, honorary secretary, MCHI.

Ramneek Bakshi, principal of global property consultants, LJ Hooker, points out that MNCs view India within the parameters of the 'Brazil, Russia, India, China' (BRIC) equation. "When they look at India as a business entity, Mumbai takes prime position. When they start looking out for space, Navi Mumbai, which forms the third level of real estate pricing, is attractive for MNCs looking to set up shop in the Mumbai region," he explains.

At the Norwegian consulate in Mumbai, George Mathew, honorary consul general, concurs, "If you look at real estate pricing trends in the MMR, Navi Mumbai fits the bill on many counts. However, the clincher is the price efficiency and developed infrastructure that Navi Mumbai provides," he concludes.

(The author is a Navi Mumbai-based real estate consultant who specialises in the commercial segment)

Airport is the best gift for Navi Mumbaikars

Wednesday, November 13, 2013 - 11:05 IST | Place: Vashi | Agency: DNA

Bhalchandra Chorghade

With the Navi Mumbai International Airport project finally getting a go-ahead, the real estate developers believe that the satellite city will now be on par with the island city of Mumbai. They expect property rates to grow drastically.
Calling the international airport project as the best thing to happen to Navi Mumbai, the real estate sector has welcomed the clearance with open arms. Developers have also thanked chief minister Prithviraj Chavan and top Cidco officials for resolving the vexed issue of land acquisition that was pending for around 20 years.

“This is good news for Navi Mumbai. The outcome of Monday’s meeting [between the CM and the PAPs] has ensured that the satellite city that had been lagging in pace for some time, will witness quick movement.

With the first flight likely to take-off in the next couple of years, major players in almost every sector will now look forward to setting up their base in the city. Allied companies, too, will come in this part of the world. The project will also boost the pace of infrastructural development in Navi Mumbai, and pending projects such as the construction of flyovers along the Thane-Belapur Road and Sion-Panvel highway will get the necessary push,” president of Builders’ Association of Navi Mumbai (BANM), Devang Trivedi said.

He added that positive development as regards to the airport will also boost the real estate sector as the land cost will appreciate, impacting the realty rates. “We [the BANM] will be having a property exhibition next month and we expect that sales as well as volume will go up drastically now. We expect the rates to go up by 15-20 %, which is a positive sign as far as the market is concerned since it was not enthusiastic since the past couple of months,” Trivedi said.

The developer also lauded the efforts put in by Cidco managing director Sanjay Bhatia and joint managing director V Radha in resolving the issue and giving a ray of hope to the residents of the satellite city.

Stating that the clearance of the major hurdle in the way of the NMIA project is a ‘victory of the people of Navi Mumbai’. Another developer, and president of MCHI-CREDAI (Raigad unit), Rajesh Prajapati said, now the market will witness a drastic change, albeit slowly and steadily. “In the form of an airport, a major economic driver has come to Navi Mumbai. It is bound to generate a lot of interest among players from almost every sphere of the society. Besides, the city will witness growth with many allied industries setting up base here, thereby bringing along ample job opportunities. The clearance of the airport project will now help the satellite city to be at par with the island city of Mumbai,” Prajapati said.

“Navi Mumbai has been in demand for its planned infrastructure, green environment, superb connectivity and cosmopolitan nature, and with the upcoming international airport, the city will witness a spectacular growth in the next 4-5 years. We want to congratulate the chief minister and Cidco officials for giving the best gift to Navi Mumbaikars and hope that things get expedited now.
All the pending projects will get completed within the stipulated time,” Prajapati added.
Kiran Bagad from Marvel’s Group was of the opinion that Navi Mumbai residents will now take pride in themselves, since now they will have their own international airport.

Int’l airport to finally take off
Developers thank the CM and top Cidco officials for resolving the vexed issue of land acquisition that was pending for around 20 years. They also lauded the efforts put in by Cidco managing director Sanjay Bhatia and joint managing director V Radha in resolving the issue and giving a ray of hope to the residents.

NAVI MUMBAI: If the increase in the number of visitors at the recently concluded Navi Mumbai property fair is any indication, the city's property market may be looking hot.

But the reality is that the property prices in Navi Mumbai are now equivalent to their counterparts in the western suburbs. For example, developers of Nerul to Kharghar projects have increased the prices of their premium projects by approximately 20-30% to touch Rs 10,000 per sq ft to Rs 15,000 per sq ft. This price is equivalent to that prevailing between Goregaon and Kandivli.

Despite clouds on the fate of Navi Mumbai airport and a Trans-Harbour link,

the property prices in Ulwe have seen a 9-10% appreciation. The average price now ranges between Rs 4,600-5,500 per sq ft.

"The price hike of about 10 to 30% across Navi Mumbai is unrealistic considering the poor infrastructure and the high quantum of flats available in the market," said a local broker. "Builders are ready to negotiate if one shows the money but they cannot afford to announce a rate cut for fear of affecting the profit margins of their investors," he added.

At the recently concluded fair, the rates quoted by builders were for saleable areas (including carpet area of house), built-up (area of walls) and super built-up (lobby, passage area). So, if a 1,000 sq ft flat is sold quoting the saleable area price at Rs 1 crore, the price per sq ft will be Rs 10,000. However, if the same flat were to be sold on the carpet area, the area will go down by 150 sq ft and the price per sq ft will be Rs 6,600. Unscrupulous builders have been known to manipulate buyers with this difference.

Often a price quotation on a 3,000 sq ft apartment could mean a carpet area of anywhere from 1,800 sq ft to 2,400 sq ft only. So in effect, the buyer is actually paying the market price, rather than the ready reckoner rate.

The delay in construction also needs to be factored in. Possession of a majority of properties is going to be delayed by two to three year (see box).

Vice president of Builders Association of Navi Mumbai Manish Bhathija however, said that projects are not delayed. "Delays, if any, are due to want of regulatory approvals. The builders have no financial woes, as there is a huge interest from buyers. Prices in Navi Mumbai are still affordable and more so when one considers the infra projects structure like the new airportwhich is being planned by the state government," he added.

Property prices in Navi Mumbai are set to shoot up following the sale of five prime plots in the area by the City and Industrial Development Corporation (Cidco) for Rs266 crore on Tuesday.

Developers believe that the high cost at which the plots were sold will lead to an inflation in the overall property rates in Navi Mumbai which, until now, offered affordable housing options.

Cidco had recently floated an advertisement inviting bids for five plots in Kharghar and Ulwe. An 8,800sqm plot in Kharghar received the highest bid at Rs1.72 lakh per sqm, helping Cidco earn a whopping Rs152.7 crore. Another 1,182sqm plot was sold at Rs1.40 lakh per sqm, working out to Rs16.54 crore. The third, a 1,555sqm plot of land, was sold at Rs1.22 lakh per sqm, raking in Rs18.97 crore.

In Ulwe, a 2,830sqm plot was sold at Rs1.51 lakh per sqm, fetching Rs42.73 crore. The fifth plot, also in Ulwe, was sold at Rs71,000 per sqm, putting Rs35 crore in Cidco’s kitty. This takes the total revenue earned by Cidco to Rs266 crore.

Initially, Cidco was apprehensive that due to the slowdown in real estate and economic sectors, there would be tepid respond to the bidding. However, developers rushed in large numbers to buy these plots and, in fact, quoted higher prices than expected.

Two years ago, the highest bid was opened at Rs92,000 per sqm rate in Navi Mumbai. “We are happy that Cidco has earned substantial revenue by selling its prime plots. This money can be used for enhancement of infrastructure in Navi Mumbai,” said a Cidco official who was part of the bidding process.

Manohar Shroff, secretary of Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai unit, said that the high cost at which the plots were sold will cause a further inflation in property prices.

“The cost of the plot is the main input cost in any project. If the developer had bought the plot at a high price then he will sell the apartment at higher prices to recover his cost and make a profit.

Cidco is not a profit-making body. They should sell plots at a reasonable rate so developers will construct and sell affordable houses,” said Shroff.

Mumbai: The ambitious under-construction project of Navi Mumbai Metro has been delayed from 2014 to 2015. However, it is still acting as a catalyst for residential demand and property values in some of the areas in the city. Nerul, Seawoods, Palm Beach, Kharghar and Kamothe are a few locations that are recording increasing property values since last couple of years.

As per the data with Magicbricks.com, 99acres.com, the property values in these locations have gone up by almost 24-50 per cent in the last two years, with Palm Beach recording the maximum rise. Shivraj of Chinta Mani Real Estate Consultant says, “The under-construction metro has impacted the prices in several localities in the last one and two years. For instance, Kharghar and Kamothe recorded a rise of almost Rs 1000 per sq ft within one year. A property that was available for almost Rs.4,000-4,500 per sq ft in Kharghar last year is now sold for Rs.5,000-5,500 per sq ft.”

Similarly, Nerul saw property values rising from an average of Rs.8,600 in 2012 to Rs.10,500 in 2013. Values in Seawoods rose from Rs.8,400 in 2012 to Rs.9,400 in 2013 and in Palm Beach from Rs.12,500 in 2012 to Rs.15,000 per sq ft in 2013. With such considerable hikes in property values, Navi Mumbai saw a large number of investors tapping the market. “Currently, Navi Mumbai is being graced with the under-construction metro and the planned international airport is an icing on the cake. Looking at the prospects, several developers are entering the market. With a large number of properties being constructed, Navi Mumbai attracts a majority of investors. Today, there are more than 70 per cent investors in the city,” adds Shivraj.

So despite the delay in the metro project, is the growth expected to continue? Zubair Patel, partner, City Home Creators answers this concern and says, “As a result of the infrastructural developments, the land values in Navi Mumbai have already appreciated. Going forward, the growth might be slow, but a correction is not expected. It is advisable to enter the market now. This is because, as the metro project nears its completion, it will only push the prices up.”